Issue No.25

Markets Wrap

Local Equities

For the month ended August 2022, the TT Composite Index returned -2.10%, led downwards by both indices. The All T&T Index decreased by -1.55% with MASSY Holdings Limited (MASSY) and Guardian Limited (GHL) returning -7.06% and -5.36% respectively. The TT Cross Listed Index fell by -3.94% over the month as the negative returns of -2.94% in Grace Kennedy Limited (GKC) and -7.60% in National Commercial Bank Financial Group (NCBFG) weighed on the Index. Over the month 7 stocks increased, 16 declined and 2 held firm.

Since the reopening of the economy COVID-19 related deaths and cases have risen. As such, we continue to encourage persons to talk all health precautions as further advances in this area should bode positively for a continued increase in economic activity and by extension the markets.

International Equities

During August the S&P 500 Index returned -4.24%, losing significant ground after climbing in July. All sectors declined with the exception of Energy and Utilities which increased by 46.2% and 5.9% respectively.  Consumer Discretionary and Communications were the largest detractors, registering declines of -26.1% and -22.2%. Consumer sentiment improved 7% from 51.5 in July to 55.1 in August as concerns about inflation retreated slightly.

Second quarter GDP came in slightly better than preliminary estimates at -0.6% over the quarter and GDP for the full year 2022 is expected to be 2.0%. Retail sales jumped over 10% in July, the largest gain in five months. Moreover, the unemployment rate moved down from 3.6% in June to 3.5% in July. At his annual address from the Jackson Hole symposium in August the Federal Reserve Chairman reinforced his intention to continue increasing interest rates in order to curb inflation.

Energy prices declined for the third month in a row with WTI Crude falling from $98.62 in July to $89.55 at the end of August amid fears that slowing growth would soften energy demand. OPEC is expected to reverse policy and tighten production when it meets in September. Current estimates for global growth in 2022 and 2023 stand at 3% and 2.9%, below the 3.5% long-term average rate for the global economy.

In seeking market outperformance, the investment focus remains towards stocks and sectors which are less leveraged to the business cycle, that can absorb the risk of higher raw material and labour costs and have balance sheets which are minimally exposed to a further rise in borrowing costs. 



1Yr % ∆

S&P 500









T&T Composite
















US 10Yr





YTD % ∆

Oil (WTI)



Nat Gas (HH)






Fund of the month:

Scotia Short Term Income (TT$)

-High quality money market instruments and short-term fixed income securities

-Low Risk

Historical Returns (August 2022)







Local Fixed Income

Yields were generally higher across the curve when compared to the prior month. The 1-year rate increased from 0.98% to 1.10%, while the 10-year moved from 5.00% to 5.07%.

Month over month liquidity increased by 59.2% from $2.9 billion in July to $4.6 billion in August. Since the start of the year both the TTD corporate and sovereign bond markets have remained relatively dormant with just two corporate issues coming to market. However companies are slowly reentering the market and another corporate issue is expected before year end.

International Fixed Income

US Investment Grade corporate spreads, as measured by the CSI BBB Index, increased by 2.06% from 2.03% to 2.07% over the month of August. The US 10-year Treasury yield increased over the period, from 2.65% on July 31st to 3.19% on August 31st. Short term rates continued to rise ahead of long-term rates, the two-year Treasury yield rose above 3.5% during the final week of August, setting a 15-year high. During the month the Fed maintained its hawkish tone and expectations remain for higher interest rates hikes to battle inflation. Interest rate futures are currently pricing in rates in the 3.7-4% range by year end.

Market Highlights

First Citizens Group Financial Holdings Limited announced the oversubscription of its Additional Public offering. The offer for sale received applications for 16,865,007 ordinary shares versus the 10,869,565 available ordinary shares.

Investment Buzz

Asset allocation is the process of dividing the money in your investment portfolio among asset classes such as stocks, bonds and cash. It is used to balance risk versus reward by adjusting the percentage of each asset class in the portfolio. 

Mutual Funds

USD Funds

Scotia Money Market Fund


Scotia US Dollar Bond Fund


Scotia Caribbean Income Fund


Scotia US Equity Fund


Scotia Global Equity Fund


Scotia Canadian Equity Fund

TTD Funds

Scotia Trinidad & Tobago Fixed Income Fund


Scotia Trinidad & Tobago Growth and Income Fund


Scotia Trinidad & Tobago Short-Term Income Fund

Need more information regarding our Investment Solutions?

Speak with one of our investment specialists. 

Estelle Narine


Candice De Sormeaux


Adesha Gonzales


General Disclosures: 

This report has been prepared by Scotia Investments Trinidad and Tobago Limited (“SITT”), a subsidiary of Scotiabank Trinidad and Tobago Limited. It is provided to you, our clients, for information purposes only and may not be redistributed. The information herein is believed to be reliable and includes information from public sources also believed to be reliable. While the objective is to provide information in a fair, clear and non-misleading manner, SITT does not represent or warrant that any information in the report is free from errors or omissions. Opinions and projections in this report are the views of the author(s) as at the date of this report.

The views expressed are subject to change and SITT has no obligation to update, modify or amend this report or to otherwise notify a recipient thereof in the event that any opinion forecast or estimate herein changes or subsequently becomes inaccurate. Nothing contained in this report is or should be relied upon as a promise or representation as to the future. Neither SITT nor any of its officers, directors, partners, or employees accepts any liability whatsoever for any direct or consequential loss arising from the use of this report or any of its contents. The securities discussed in this publication may not be suitable for all investors.

This report is provided to you for informational purposes only. It is not an offer or a solicitation of an offer to buy or sell any securities or to participate in any trading strategy.  This report is not intended to provide personal investment advice and it does not take into account the specific investment objectives, financial situation or particular needs of any specific person. Investors should seek advice regarding the appropriateness of investing in securities and implementing investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. Nothing contained in this report is or should be relied upon as a promise or representation as to the future. The information in this publication is not intended to predict actual results, which may differ substantially from those mentioned in this report. Scotia Investments Trinidad and Tobago Limited, its directors, or other officers may have a position in, or engage in transactions in any of the securities mentioned herein.